London / UK. (ffg) British Finsbury Food Group PLC, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and ‘out of home eating’ foodservice channels, is providing an update on trading for the full financial year, ended 01 July 2017, prior to entering its close period.
Total Company sales revenues grew to 314.3 million GBP, a like for like increase of 0.3 percent on the prior year, and the Group is confident of delivering profits in line with market expectations. On a constant currency basis, revenues decreased 1.1 percent like for like on the prior year. Explanation: The financial year ended 02 July 2016 is a 53-week period, like for like performance excludes week 53.
Against a backdrop of UK retail food market deflation in the period, the UK Bakery division declined by 1.4 percent on a like for like basis. The decline reduced from 2.9 percent during H1 2017 to an increase of 0.1 percent in H2 2017, with the second half benefiting from a growth in sales revenues. Additionally, trading in the UK Bakery division was stronger in the second half of the year against the full financial year ended 01 July 2016 as the Group entered a period of price inflation.
The Overseas division, the Group’s 50 percent owned European business, grew by 17.3 percent (made up of 2.2 percent organic growth and 15.1 percent exchange rate benefit). This positive performance and exchange rate impact mitigates the effect of the Euro on the UK Bakery business, validating the strategic geographic diversification that the Group has implemented.
Ongoing product innovation and improvements in efficiency and productivity, together with the benefits of the Group’s capital investment programme, has played an important role in addressing the previously noted industry-wide challenges. As detailed in the Group’s interim results, the scale of these challenges has necessitated price recovery and as such the Group has had productive discussions with its customers during the period. The Group continues to monitor and review the need for further action in light of unusual cost spikes, as is currently well documented to be the case with butter.
The Board has built a strong multi-channel business and a large diversified speciality bakery group and believes that despite the current pressures on the industry, it is well equipped to maintain its market leading position and continue to deliver growth and improved shareholder value over the period ahead.
John Duffy, Chief Executive of Finsbury Food Group plc, commented: «The hard work undertaken in prior periods has ensured that we have maintained our course, with the benefits of having a diversified business across channels and geography coming to the fore. Considering the pressures the industry faces, we are very pleased to have grown revenue and are confident that the Group is well positioned to maintain its strong market position and continue to deliver shareholder returns».